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Which price function to use when estimating willingness to pay?


I just have a general question based on the argument in this paper (https://www.sawtoothsoftware.com/download/techpap/monetary.pdf ) to determine pricing sensitivity, and the suggestion here to use piecewise function to model price (https://www.sawtoothsoftware.com/help/issues/ssiweb/online_help/modelingthepricefunction.htm ).

If we're using the piecewise function, estimating the willingness to pay (WTP) for switching from one level to another within an attribute can lead to some odd-looking results when the levels' utilities are wide enough that we go from one slope to another.

I was just wondering whether it would make more sense to use linear or log-linear functions to estimate the price attribute if we want to measure WTP.
asked Sep 22, 2014 by Phil

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